Best Construction Business Loans in 2025

Lenders consider construction a high-risk industry, which can make it tricky to get the financing your business needs. However, there are still loan options available to construction companies that can help your business grow, purchase equipment or materials or overcome short-term cash flow needs. The lenders on this list offer competitive rates, terms and loan amounts and welcome construction businesses.

7 best construction business loans

• Best for online business loans: Fundera business loans
• Best for comparing lenders: Lendzi
• Best for SBA loans: TD Bank small business loans
• Best for term loans: Pinnacle Funding
• Best for equipment financing: Lendio business loans
• Best for invoice factoring: AltLine invoice factoring
• Best for business lines of credit: OnDeck business lines of credit

Finder Score	Loan amount	Loan term	APR
Best for online business loans
Finder score 9.5 Excellent Fundera business loans	Finder score 9.5 Excellent	$2,500 – $5,000,000	3 months to 25 years	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Fundera by NerdWallet is a business loan marketplace that connects small business owners with multiple lenders through a single application. The platform offers access to term loans, SBA loans, lines of credit, equipment financing and more, with loan amounts ranging from $2,500 to $5 million. With a quick online application using only a soft credit check, Fundera has helped over 77,000 small businesses secure more than $5.4 billion in funding. The platform provides dedicated loan specialists for personalized guidance, and funding can be as fast as one business day. Pros & cons Pros Free service Single application connects you with multiple lenders Soft credit check won't impact credit score Fast funding possible within 24 hours Cons Rates and fees aren't disclosed upfront Not a direct lender, terms set by partners Limited network compared to larger marketplaces
Best for comparing lenders
Finder score 9.5 Excellent Lendzi	Finder score 9.5 Excellent	$5,000 – $20,000,000	6 months to 25 years	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Lendzi is a business loans marketplace, with plenty of options for construction companies, including term loans, lines of credit, equipment financing and more. And it has a highly rated and knowledgeable staff that can help you choose the best loan for your business. It doesn't disclose rates, fees and loan terms on its site, but that's likely because those factors vary depending on the lender and type of loan. Pros & cons Pros Wide variety of loan options Excellent customer service Fast funding possible Cons Doesn't disclose rates and fees Some loan options may be expensive Could receive unwanted marketing materials
Best for SBA loans
Finder score 6.7 Standard TD Bank small business loans	Finder score 6.7 Standard	$10,000 – $12,000,000	36 to 60 months	As low as 7%	Go to site View details Compare product selection Compare	loading	Why we like it TD Bank is an SBA preferred lender, meaning it can make credit decisions without the SBA's approval and fund your construction business loan faster. It offers multiple types of SBA loans, including 7(a), 504 and SBA Express loans, and it also has USDA loans up to $25 million. It doesn't list its rates, but most SBA loans are capped at about 15% — much lower than most lenders' maximum rates. But the loan process can be quite a bit slower than online lenders, for example, and may require a down payment or collateral. Pros & cons Pros Competitive rates High loan amounts Multiple loan options Cons Not a type of fast funding May require a down payment or collateral Need to meet SBA loan requirements
Best for term loans
Finder score 9.9 Excellent Pinnacle Funding	Finder score 9.9 Excellent	$10,000 – $5,000,000	6 to 24 months	Varies by loan type	Go to site View details Compare product selection Compare	loading	Why we like it Pinnacle Funding welcomes construction businesses and offers term loans up to $5 million. It doesn't perform a hard credit check, so there's no impact to your credit, you could get approved or funded in under 24 hours and it only requires a 525 credit score to qualify. But it doesn't disclose its rates and fees, and its terms are on the short side compared to many other term loans. Pros & cons Pros Term loans up to $5 million Funding possible within 24 hours No hard credit check Cons Undisclosed rates and fees;Short loan terms;Requires at least $180,000 in annual revenue
Best for equipment financing
Finder score 9.6 Excellent Lendio business loans	Finder score 9.6 Excellent	$1,000 – $10,000,000	3 months to 25 years	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Lendio is a business loans marketplace with multiple equipment financing options for construction companies. It offers competitive rates as low as 7.5%, a wide range of loan amounts and has fairly lenient requirements to qualify, including only a 520 credit score. But rates could get high if your credit isn't the best, it requires at least $50,000 in monthly revenue and you may need a down payment with some lenders. Pros & cons Pros Compare multiple options with one application Rates as low as 7.5% Funding as soon as same-day Cons May need a down payment Requires $50,000+ in monthly revenue Rates and loan amounts vary depending on qualifications
Best for invoice factoring
Finder score Not scored yet AltLine invoice factoring	Finder score Not scored yet	Up to 90% of the invoice's value	Up to 12 months	1% to 5% fee for terms	View details Compare product selection Compare	loading	Why we like it For construction companies with outstanding invoices, a factoring company like altLINE can provide you with a flexible form of financing by purchasing your unpaid invoices for cash up front. There's no minimum credit score requirement, it could advance as much as 90% of an invoice's value and it offers funding as soon as the same day. But it is one of the pricier forms of business funding, and rates get higher the longer your customers take to pay their bills. It also requires a Uniform Commercial Code (UCC) filing to secure the invoices. Pros & cons Pros Advances up to 90% of the invoice value No minimum credit score requirement Fast funding Cons An expensive form of financing Rates increase the longer customers take to pay Requires a UCC filing
Best for business lines of credit
Finder score 9.4 Excellent OnDeck business lines of credit	Finder score 9.4 Excellent	$6,000 – $200,000	Up to 24 months	52.6% average APR	View details Compare product selection Compare	loading	Why we like it OnDeck offers business lines of credit (LOCs) to construction companies for up to $200,000. The credit lines are revolving, so your balance replenishes as you repay it. This setup can be useful for construction firms that need flexible access to cash, but don't need a large lump sum. It has relatively lenient requirements to qualify, but rates can be steep if you don't have excellent credit, and LOCs typically charge fees on top of interest. Pros & cons Pros Flexible form of financing Credit limits up to $200,000 Fast funding possible Cons Rates can be high LOCs typically charge multiple fees Longest term is 24 months

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Methodology: How we choose the best construction business lenders

Finder’s editorial experts review dozens of business loan providers before selecting the best lenders for construction companies and contractors. We pick lenders that have loan options for construction businesses, good customer service and competitive rates. We also review each company’s Better Business Bureau (BBB) reviews and Trustpilot ratings.

We weigh lenders and financing companies against these factors:

• Time-in-business requirements
• Annual revenue requirements
• Willingness to work with new or risky industries
• APRs
• Fees, such as origination fees
• Loan amounts
• Repayment terms
• Credit score requirements
• Turnaround time
• State availability
• Application process
• Lender reputation and customer reviews

How to choose the best type of construction business loan

Finding the right construction loan starts with matching the type of financing to the problem you’re trying to solve — then comparing lenders to make sure you’re getting the best deal.

Start by narrowing down the right loan type:

• Need heavy machinery? Look at equipment loans.
• Cash flow issues? A business line of credit or invoice factoring can help smooth gaps.
• Need funding to finish a specific project? An SBA Contract CAPLine may be your best fit.
• Need money fast? Short-term loans or lines of credit typically offer the quickest turnaround.
• Prioritizing low rates and fees? SBA loans usually offer the most competitive pricing, but expect a longer application and funding timeline.

Keep in mind: Construction is considered a higher-risk industry, so approval can be harder. Before you apply, double-check that your business meets the lender’s minimum requirements.

What to compare between construction loan lenders

Once you’ve found the type of business loan you need and lenders that work with construction companies, compare these key factors to find the lender that offers the best terms.

• Loan type. Some lenders offer multiple financing options, while others specialize in a single area. Make sure the lenders you’re comparing have the type of funding you need.
• Rates. The interest rates for construction business loans vary widely depending on the loan type and the lender — look around to find the best deal.
• Fees. Some lenders charge fees on top of interest, so be sure you understand the total cost of the loan.
• Turnaround time. Think about how soon you need access to capital. For example, SBA loans typically have some of the most competitive rates, but they can take weeks or months to fund.
• Loan terms. Business loan terms can range from months to years, which also affects the size of your repayments. Consider how long you’ll reasonably need to repay the loan to help you decide on the best loan term for your business.
• Lender requirements. Every lender has minimum criteria you must meet to qualify for financing. Find out before you apply to avoid any unnecessary dings to your credit.

Types of construction business loans

Here’s a breakdown of the most common types of business loans, how much you can typically borrow and what they’re best for.

What is a construction business loan and how does it work?

A construction business loan is the same as financing for other kinds of businesses, except the lender specifically works with owners in the construction industry. You might use one to purchase heavy equipment, move your office to a larger location or cover cash flow gaps during seasonally slow periods.

Not all lenders work with risky industries like construction, but you can still find them at banks, credit unions and online, with options for short or longer loan terms. And, like most types of financing, you’ll need to meet basic criteria such as minimum time-in-business, credit score and revenue requirements.

Pros and cons of construction business loans

Compare other construction business loans

Consider these lenders that may have other options to finance your construction business.

7 of 7 results

Updated regularly

Finder Score	Min. Amount	Max. Amount	APR	Requirements
Promoted Finder score 9.9 Excellent Pinnacle Funding	Finder score 9.9 Excellent	$10,000	$5,000,000	Varies by loan type	525 credit score, 6+months in business, $180,000+ annual revenue	Apply in minutes with funding as fast as 24 hours and zero impact to your credit score.	Go to siteView details Compare product selection Compare	loading
Promoted Finder score 9.5 Excellent Fundera business loans	Finder score 9.5 Excellent	$2,500	$5,000,000	Varies by lender	$60,000+ of annual revenue, 600+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to siteView details Compare product selection Compare	loading
Promoted Finder score 9.5 Excellent Lendzi	Finder score 9.5 Excellent	$5,000	$20,000,000	Varies by lender	Minimum credit score of 500, minimum annual revenue of $120,000, preferably one to two years in business	Compare lending options and get funded fast.	Go to siteView details Compare product selection Compare	loading
Finder score 8.8 Great PayPal LoanBuilder	Finder score 8.8 Great	$5,000	$300,000	Fixed fee (amount not disclosed)	Minimum credit score not disclosed, 9+ months in business, at least $33,300 in annual revenue	Go to siteView details Compare product selection Compare	loading
Finder score 9.6 Excellent Lendio business loans	Finder score 9.6 Excellent	$1,000	$10,000,000	Varies by lender	Operate business in US for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to siteView details Compare product selection Compare	loading
Finder score 8.9 Great Best Money	Finder score 8.9 Great	$5,000	$5,000,000	Varies by lender	Depends on the lender	Apply in minutes. Get funded fast.	Go to siteView details Compare product selection Compare	loading
Finder score 9.6 Excellent Advance Funds Network	Finder score 9.6 Excellent	$10,000	$5,000,000	Varies by lender	6 months in business, at least $10,000 in monthly revenue	A range of funding options for your business	Go to siteView details Compare product selection Compare	loading

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How we picked these

What is the Finder Score?

The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.

Read the full breakdown

How to qualify for a construction business loan

Lenders typically look at your credit score, revenue and how long you’ve been in business. To get a construction business loan, you’ll need to meet or exceed the lender’s minimum criteria to qualify.

• Credit score. Traditional banks tend to require good credit from business owners — typically 670 or higher. But online lenders often allow scores as low as 580, or even less, for some loan options like invoice factoring.
• Revenue. Every lender has different revenue requirements, but around $10,000 a month is pretty standard for many online lenders. Even if you don’t bring in that much, you still have options.
• Time in business. Some lenders only require six months in business, but a construction business loan could be easier to get if you’ve had at least two years of experience.

How to apply for a construction business loan

Researching and preparing for your loan application will give you the best chance at loan approval.

1. Define your business goal. Be clear about what you hope to achieve with your loan funds and how much you’ll need.
2. Check your budget. Determine how much you can afford in repayments each month by calculating your loan payments to make sure they fit in your budget.
3. Know your score. Check your credit score to see which lenders you might qualify for.
4. Compare lenders. Be sure to compare multiple lenders and consider interest rates, fees and terms to find the best deal. It’s also good to check their minimum requirements to qualify.
5. Prepare your documents. What you’ll need to submit depends on the lender, but you’ll typically need to provide basic financial documents like bank statements, tax returns and profit and loss statements.
6. Apply. Fill out the loan application, submit your documents and wait for a decision. If approved, be sure to review your contract before signing.

Frequently asked questions

• What rates can I expect from a construction business loan?

  The average business loan rates vary widely depending on the lender and the type of loan. For example, bank term loans could start as low as 7%, whereas factoring can equate to double-digit APRs.

• Can I get a business loan to start a construction company?

  Maybe. Some lenders may be reluctant to provide certain types of loans to a startup construction business because of the risk. However, if what you need is equipment to get going, you might have better luck, because the equipment secures the loan, lowering the risk for the lender.

• Can I get a business loan if I'm an independent contractor?

  Yes! You're still a business even if you're the only employee. But you'll still need to meet lenders' minimum credit, revenue and time-in-business requirements.

To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.

Written by

Lacey Stark

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio